HF 2471 (LSB 5872HV (4) 85)

HOUSE FILE 2471

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 2430)

(As Amended and Passed by the House 2014-04-23)

A BILL FOR

An Act relating to the Iowa individual income tax checkoffs by modifying the Iowa election campaign income tax checkoff and providing for the future repeal of the checkoff, by creating an income tax checkoff for the reduction of food insecurity within this state and providing for the future repeal of the checkoff, by creating income tax checkoffs for the Iowa state fair foundation fund and the veterans trust fund and volunteer fire fighter preparedness fund, making an appropriation, creating a study committee, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

INCOME TAX CHECKOFF FOR IOWA CHECK OFF HUNGER FUND
    Section 1.  NEW SECTION.  231.67  Iowa check off hunger fund.
   1.  An Iowa check off hunger fund is created in the state treasury under the control of the department. The fund is composed of moneys appropriated or available to and obtained or accepted by the treasurer of state for deposit in the fund. The fund shall include moneys transferred to the fund pursuant to an income tax checkoff provided in chapter 422, division II, if applicable. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to and remain in the fund. Section 8.33 does not apply to moneys in the fund.
   2.  Moneys in the fund are appropriated to the department to provide grants to persons to be used for the purpose of reducing food insecurity within the state. The grants shall be awarded as follows:
   a.  Forty percent of the moneys in the fund shall be awarded to a nonprofit, tax-exempt association, chosen by the department, that receives donations under section 170 of the Internal Revenue Code and whose members include Iowa food banks and their affiliates that together serve all counties in the state, to be used to purchase food for distribution to food-insecure Iowans.
   b.  Fifty percent of the moneys in the fund shall be awarded to each area agency on aging designated under section 231.32 in the proportion that the estimated amount of older individuals in Iowa served by that area agency on aging bears to the total estimated amount of older individuals in Iowa, to be used to provide congregate meals and home-delivered meals to food-insecure older individuals in Iowa.
   c.  Ten percent of the moneys in the fund shall be awarded to persons who are using innovative ways to reduce food insecurity in this state. To be eligible to receive a grant pursuant to this paragraph “c”, a person shall apply to the department in the manner prescribed by the department. In reviewing applications and making grants pursuant to this paragraph “c”, the department may consider any factors the department deems appropriate.
   3.  The department shall adopt rules to administer the Iowa check off hunger fund.
    Sec. 2.  NEW SECTION.  422.12I  Income tax checkoff for Iowa check off hunger fund.
   1.  Notwithstanding section 422.12E, for the tax year beginning in the 2014 calendar year, a person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid to the Iowa check off hunger fund created in section 231.67. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the Iowa check off hunger fund, the amount designated shall be reduced to the remaining amount of refund or the remaining amount remitted with the return. The designation of a contribution to the Iowa check off hunger fund under this section is irrevocable.
   2.  The director of revenue shall draft the 2014 income tax form to allow the designation of contributions to the Iowa check off hunger fund on the tax return. The department of revenue shall transfer the total amount designated on the 2014 tax return forms to the Iowa check off hunger fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
   3.  The department on aging may authorize payment of moneys from the Iowa check off hunger fund, in accordance with section 231.67.
   4.  The department of revenue shall adopt rules to administer this section.
   5.  This section is repealed January 1, 2015.

DIVISION II

IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF
    Sec. 3.  Section 68A.601, Code 2014, is amended to read as follows:
   68A.601  Checkoff —— income tax.

   A For tax years beginning before January 1, 2014, a person whose state income tax liability for any taxable year is one dollar and fifty cents or more may direct that one dollar and fifty cents of that liability be paid over to the Iowa election campaign fund when submitting the person’s state income tax return to the department of revenue. In the case of a joint return of husband and wife having a state income tax liability of three dollars or more, each spouse may direct that one dollar and fifty cents be paid to the fund. The For tax years beginning before January 1, 2014, the director of revenue shall draft the income tax form to provide spaces on the tax return which the taxpayer may use to designate that contributions made under this section be credited to a specified political party as defined by section 43.2, or to the Iowa election campaign fund as a contribution to be shared by all such political parties in the manner prescribed by section 68A.602. The form shall inform the taxpayer of the consequences of the choices provided under this section, but this information may be contained in a footnote or other suitable form if the director of revenue finds it is not feasible to place the information immediately above the signature line. The action taken by a person for the checkoff is irrevocable.
    Sec. 4.  Section 422.12J, Code 2014, is amended to read as follows:
   422.12J  Income tax checkoff for Iowa election campaign fund.

   A For tax years beginning before January 1, 2014, a person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate a contribution to the Iowa election campaign fund authorized pursuant to section 68A.601.

DIVISION III

FUTURE REPEAL OF IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF
    Sec. 5.  Section 68A.103, subsection 2, Code 2014, is amended by striking the subsection.
    Sec. 6.  Section 97B.3, subsection 2, Code 2014, is amended to read as follows:
   2.  The qualifications for appointment as the chief executive officer shall include management-level pension fund administration experience. The qualifications for appointment as the chief executive officer shall also include a demonstrated knowledge of all aspects of pension fund administration, including financial management, investment asset management, benefit design and delivery, legal administration, and operations administration. The chief executive officer shall not be selected on the basis of political affiliation, and while employed as the chief executive officer, shall not be a member of a political committee, participate in a political campaign, or be a candidate for a partisan elective office, and shall not contribute to a political campaign fund, except that the chief executive officer may designate on the checkoff portion of the state or federal income tax return, or both, a party or parties to which a contribution is made pursuant to the checkoff. The chief executive officer shall not hold any other office under the laws of the United States or of this or any state and shall devote full time to the duties of office.
    Sec. 7.  Section 422.12D, subsection 4, Code 2014, is amended to read as follows:
   4.  The department shall adopt rules to implement this section. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
    Sec. 8.  Section 422.12E, subsection 1, Code 2014, is amended to read as follows:
   1.  For tax years beginning on or after January 1, 2004, there shall be allowed no more than four income tax return checkoffs on each income tax return. When the same four income tax return checkoffs have been provided on the income tax return for two consecutive years, the two checkoffs for which the least amount has been contributed, in the aggregate for the first tax year and through March 15 of the second tax year, are repealed. This section does not apply to the income tax return checkoff provided in section 68A.601.
    Sec. 9.  Section 422.12K, subsection 2, Code 2014, is amended to read as follows:
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the child abuse prevention program fund on the tax return. The department of revenue, on or before January 31, shall transfer the total amount designated on the tax return forms due in the preceding calendar year to the child abuse prevention program fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
    Sec. 10.  Section 422.12L, subsection 2, Code 2014, is amended to read as follows:
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the veterans trust fund and to the volunteer fire fighter preparedness fund as one checkoff on the tax return. The department of revenue, on or before January 31, shall transfer one-half of the total amount designated on the tax return forms due in the preceding calendar year to the veterans trust fund and the remaining one-half to the volunteer fire fighter preparedness fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
    Sec. 11.  Section 456A.16, unnumbered paragraph 7, Code 2014, is amended to read as follows:

   The department shall adopt rules to implement this section. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
    Sec. 12.  Section 474.10, Code 2014, is amended to read as follows:
   474.10  General counsel.

   The board shall employ a competent attorney to serve as its general counsel, and assistants to the general counsel as it finds necessary for the full and efficient discharge of its duties. The general counsel is the attorney for, and legal advisor of, the board and is exempt from the merit system provisions of chapter 8A, subchapter IV. Assistants to the general counsel are subject to the merit system provisions of chapter 8A, subchapter IV. The general counsel or an assistant to the general counsel shall provide the necessary legal advice to the board in all matters and represent the board in all actions instituted in a state or federal court challenging the validity of a rule or order of the board. The existence of a fact which disqualifies a person from election or from acting as a utilities board member disqualifies the person from employment as general counsel or assistant general counsel. The general counsel shall devote full time to the duties of the office. During employment the counsel shall not be a member of a political committee, contribute to a political campaign fund other than through the income tax checkoff for contributions to the Iowa election campaign fund and the presidential election campaign fund, participate in a political campaign, or be a candidate for a political office.
    Sec. 13.  Section 475A.1, subsection 4, Code 2014, is amended to read as follows:
   4.  Political activity prohibited.  The consumer advocate shall devote the advocate’s entire time to the duties of the office; and during the advocate’s term of office the advocate shall not be a member of a political committee or contribute to a political campaign fund other than through the income tax checkoff for contributions to the Iowa election campaign fund and the presidential election campaign fund or take part in political campaigns or be a candidate for a political office.
    Sec. 14.  Section 904.107, Code 2014, is amended to read as follows:
   904.107  Director —— appointment and qualifications.

   The chief administrative officer for the department is the director. The director shall be appointed by the governor subject to confirmation by the senate and shall serve at the pleasure of the governor. The director shall be qualified in reformatory and prison management, knowledgeable in community-based corrections, and shall possess administrative ability. The director shall also have experience in the field of criminology and discipline and in the supervision of inmates in corrective penal institutions. The director shall not be selected on the basis of political affiliation, and while employed as the director, shall not be a member of a political committee, participate in a political campaign, be a candidate for a partisan elective office, and shall not contribute to a political campaign fund, except that the director may designate on the checkoff portion of the state or federal income tax return, or both, a party or parties to which a contribution is made pursuant to the checkoff. The director shall not hold any other office under the laws of the United States or of this or any state or hold any position for profit and shall devote full time to the duties of office.
    Sec. 15.  REPEAL.  Sections 68A.601, 68A.602, 68A.603, 68A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and 422.12J, Code 2014, are repealed.
    Sec. 16.  EFFECTIVE DATE.  This division of this Act takes effect July 1, 2015.

DIVISION IV

INCOME TAX CHECKOFFS FOR THE IOWA STATE FAIR FOUNDATION FUND AND THE VETERANS TRUST FUND AND VOLUNTEER FIRE FIGHTER PREPAREDNESS FUND
    Sec. 17.  NEW SECTION.  422.12D  Income tax checkoff for the Iowa state fair foundation fund.
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid to the foundation fund of the Iowa state fair foundation as established in section 173.22. If the refund due on the return or the payment remitted with the return is insufficient to pay the amount designated by the taxpayer to the foundation fund, the amount designated shall be reduced to the remaining amount of the refund or the remaining amount remitted with the return. The designation of a contribution to the foundation fund under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the foundation fund on the tax return. The department, on or before January 31, shall transfer the total amount designated on the tax form due in the preceding year to the foundation fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
   3.  The Iowa state fair board may authorize payment from the foundation fund for purposes of supporting foundation activities.
   4.  The department of revenue shall adopt rules to implement this section.
   5.  This section is subject to repeal under section 422.12E.
    Sec. 18.  NEW SECTION.  422.12L  Joint income tax checkoff for veterans trust fund and volunteer fire fighter preparedness fund.
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid jointly to the veterans trust fund created in section 35A.13 and to the volunteer fire fighter preparedness fund created in section 100B.13. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer, the amount designated shall be reduced to the remaining amount of refund or the remaining amount remitted with the return. The designation of a contribution under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the veterans trust fund and to the volunteer fire fighter preparedness fund as one checkoff on the tax return. The department of revenue, on or before January 31, shall transfer one-half of the total amount designated on the tax return forms due in the preceding calendar year to the veterans trust fund and the remaining one-half to the volunteer fire fighter preparedness fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
   3.  The department of revenue shall adopt rules to administer this section.
   4.  This section is subject to repeal under section 422.12E.
    Sec. 19.  REPEAL.  Sections 422.12D and 422.12L, Code 2014, are repealed.
    Sec. 20.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to January 1, 2014, for tax years beginning on or after that date.

DIVISION V

STUDY COMMITTEE
    Sec. 21.  INCOME TAX CHECKOFF STUDY COMMITTEE.
   1.  The legislative council is requested to establish an income tax checkoff study committee. The objective of the study committee shall be to review the use and effectiveness of individual income tax checkoffs in Iowa, and the desirability for making changes to the number, type, or administration of the individual income tax checkoffs.
   2.  The study committee shall meet during the 2014 legislative interim. The study committee shall submit a report and recommendations to the general assembly by January 1, 2015.